S&P 500 3-Month Realized Average Stock Correlation With realized correlations across the S&P 500 sinking, the market looks less like a monolith and more like a stock picker’s playground, where sector themes and company fundamentals are back in focus. Image: Goldman Sachs Global Investment Research
Bitcoin-Nasdaq 100 30-Day Correlation Correlation between Bitcoin and the Nasdaq 100 has climbed to multi-year highs recently. Yet, as macroeconomic factors change and Bitcoin develops as an asset class, this correlation with traditional equities may decrease. Image: Bloomberg
ACWI Ex-U.S. vs. U.S. 3-Month Correlation and U.S. Equity 3-Month Return When U.S. equities experience a sell-off, it often indicates underlying worries about the global economy or financial system, triggering risk aversion. This typically leads to declines in both domestic and international equities. Image: Goldman Sachs Global Investment Research
Correlation Between Top 10 and S&P 500 While the concentration of large-cap stocks in the U.S. equity market is a topic of discussion, the evidence suggests that its impact on market behavior is not as alarming as some might believe. Image: S&P Dow Jones Indices
Two-Month Correlation Between Bloomberg U.S. Treasury Index and S&P 500 Index The current positive correlation between stocks and bonds emphasizes the need for investors to diversify beyond traditional assets and adopt more sophisticated risk management strategies. Image: Morgan Stanley Wealth Management
5-Year U.S. Treasury Yield vs. Bank Stocks Correlation The combination of higher bond yields and rising bank stocks is often often viewed as a sign of a bullish market environment. Image: BofA Global Investment Strategy
U.S. Stocks – Average Stock Correlation in the S&P 500 The current trend in the S&P 500 indicates a significant rise in stock correlation, suggesting a more homogenous market behavior that could pose risks for investors relying on diversification strategies. Image: Goldman Sachs Global Investment Research
Rolling 24 Month Correlation Between U.S. Treasury Bonds and Equities Amid high inflation, UST bonds become less effective as a hedge against U.S. stocks, as rising prices erode bond payouts and interest rate hikes lead to a drop in bond prices. Image: BofA Research Investment Committee
Correlation – S&P 500 Growth vs. S&P 500 Value The correlation between S&P 500 Growth and S&P 500 Value continues to increase. Image: The Daily Shot
S&P 500 – Cross-Asset Correlations So far, the S&P 500 remains inversely correlated with the U.S. dollar and positively correlated with U.S. 10-year bonds. Image: Goldman Sachs Global Investment Research
MSCI All Country World Index and Global Pairwise Stock Correlations The bear market bottom is probably not yet in, as stock correlation is higher at global market bottoms. Image: Morgan Stanley Wealth Management